Pune-based auto components manufacturer SEDEMAC Mechatronics, founded by IIT Bombay professor Shashikanth Suryanarayanan and his fellow researchers, reported a 30% YoY increase in net profit to Rs 39.2 crore in Q2 FY27, compared with Rs 30.1 crore in the corresponding quarter last year.
Revenue from operations rose 39.8% to Rs 400.6 Cr from Rs 286.5 Cr in Q2 FY26. Including other income of Rs 61 lakh, total income stood at Rs 401.3 crore for the quarter ended September 2026.
Mobility Business Drives SEDEMAC’s Revenue Growth
SEDEMAC operates across mobility and industrial segments, with mobility accounting for the larger share of its business.
Revenue from the mobility segment increased 52.6% YoY to Rs 366.4 crore from Rs 240 crore. In contrast, industrial segment revenue declined 26.2% to Rs 34.3 crore from Rs 46.5 crore.
The growth in mobility was supported by demand for electronic control units (ECUs), including integrated starter generator (ISG) systems and motor control units for electric two-wheelers.
Rising Input Costs Put Pressure on Margins
Total expenses increased 44.5% YoY to Rs 350.7 crore from Rs 242.7 crore. Cost of materials consumed rose 56.7% to Rs 277.4 crore, while employee benefit expenses increased to Rs 25.3 crore from Rs 23.2 crore. Finance costs also climbed to Rs 5.9 crore from ₹2.5 crore.
SEDEMAC reported EBITDA of approximately ₹76 crore, up 22% YoY. However, its EBITDA margin narrowed to 19% from 21.7% in Q2 FY26, reflecting pressure from higher input and operating costs.
Profit before tax grew 12.2% to ₹50.5 crore from ₹45 crore. The increase in net profit was also supported by a decline in total tax expense to ₹11.4 crore from ₹14.9 crore in the year-ago quarter.
H1 FY27 Revenue Rises 41%
For the first half of FY27, SEDEMAC reported revenue from operations of ₹710.4 crore, up 41% from ₹503.8 crore in H1 FY26. Net profit increased 53.5% to ₹72.5 crore from ₹47.2 crore.
However, cash flow from operations turned negative at ₹20.4 crore during the six-month period, compared with a positive ₹120.7 crore in H1 FY26. An increase in trade receivables and inventories absorbed cash, highlighting the working-capital requirements accompanying the company's expansion.
New Product Programmes Support Growth Outlook
In its investor presentation, SEDEMAC identified electric two-wheeler motor control units and ISG electronic control units for export three-wheelers as important growth drivers.
The company said its ISG and electronic fuel injection (EFI) ECUs crossed one million shipments in Q2 FY27, less than two years after production began in October 2024. It has also secured an order for an ISG ECU and magneto kit from a European two- and three-wheeler OEM, with production expected to begin in H1 FY28.
SEDEMAC has flagged tightening semiconductor supplies and rising commodity and printed circuit board costs as risks. It expects EBITDA margin percentages to remain broadly stable in H2 FY27 compared with H1.
The results underline SEDEMAC's growing position in mobility electronics, but also show the importance of managing input costs and working capital as production scales.
Disclaimer: This article is for information purposes only and is not investment advice. Investments in securities are subject to market risks. Please read the official offer documents before investing.
